Tech turns the new currency for forex trade amid shifting geopolitics

The shifting sands of geopolitics have put the role of currency settlement in sharp focus. As trade relationships evolve and change, nations are using a wider basket of currencies. Though the dollar and euro remain important, economies like India, China, Russia and the United Arab Emirates are increasing trade with other currencies.

 

State-owned Indian Oil recently paid in Chinese Yuan to purchase Russian oil, according to reports. Finance Minister Nirmala Sitharaman has promised a real-time foreign currency settlement system. The new system will use emerging technologies to complete transactions instantly — a process that typically takes about 36-48 hours. 

Technologies like artificial intelligence (AI) and blockchain are modernising foreign exchange markets. With the growth of international trade and rising volumes of currency exchange, the demand for robust, efficient and transparent forex settlement systems is more pressing than ever. Historically, forex settlements have faced challenges such as inefficiencies, payment delays, and counterparty risk. However, technological advancements are reshaping this space. 

Forex trading is complex, involving a web of banks, time zones and regulatory frameworks. As the industry evolves, there’s a shift towards technology-driven solutions that go beyond traditional centralised systems and provide wider accessibility, faster settlements, and reduced dependence on prefunding and intermediaries. Blockchain platforms are emerging as powerful tools to automate, secure and accelerate the clearing and settlement process, helping cut costs and mitigate risks. 

By analysing historical forex data, central bank policies, economic indicators, and market sentiment, AI models can forecast currency movements with accuracy. Machine learning (ML) techniques detect patterns and anomalies, while enabling continuous model retraining to keep predictions relevant. These systems process data in real time to assess the impact of geopolitical events, economic shifts or global crises on currency prices, offering businesses actionable insights. 

AI-powered trading bots improve efficiency by executing forex transactions based on predefined risk parameters. Using strategies like arbitrage and hedging, these bots help minimise potential losses. 

An important tech-enabled development in the forex market services is the rise of firms such as Wise (formerly TransferWise) and PayPal redefining how individuals and businesses conduct international money transfers. These platforms offer intuitive, low-cost solutions that bypass traditional banking intermediaries, significantly reducing both the time and expense associated with cross-border transactions. By leveraging technology and real-time exchange rates, these services empower users with faster settlements and more control over their financial operations. 

Another key innovation in the forex ecosystem is the prominence of multi-currency digital wallets. These wallets empower users to manage multiple currencies within a single account — enabling seamless holding, conversion, and transfer of funds across borders. Platforms like PayPal and Revolut have led the way in offering intuitive interfaces and competitive exchange rates, making currency management more accessible and efficient. 

For frequent travellers and global businesses, multi-currency wallets eliminate the need for maintaining multiple banking relationships and simplify financial operations. By providing real-time access to diverse currencies, these solutions offer enhanced flexibility, cost savings, and operational agility — reshaping how individuals and enterprises engage in international commerce. 

The UPI-PayNow linkage is a landmark collaboration between the Reserve Bank of India and the Monetary Authority of Singapore. It enables seamless, real-time cross-border fund transfers between individuals in India and Singapore. Indian users can receive funds via Unified Payments Interface, while remittances to Singapore can be made using a recipient’s mobile number or virtual payment address. 

As the world’s first Cloud-based, real-time cross-border payment system, UPI-PayNow is a new benchmark in in global payment connectivity.